- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
It depends. Your original purchase price is the basis for your stock. Even though your donation was based on Fair Market Value (FMV) and it was more than $500, IRS requires Form 8283 (Noncash Charitable Contributions). If you look at that form, Column (g) specifically asks for the "Donor's cost or adjusted basis.
Even though you get to deduct the full Fair Market Value (FMV) and skip the capital gains tax (the "double tax break"), the IRS still wants to see your basis on Form 8283. To get the FMV deduction, you must have held the stock for more than one year. By asking for the date and price, the software is triple-checking that you aren't trying to deduct a "short-term" gain (which would be limited to your cost basis).
So your cost basis is relevant if the stock donated was more than $500 and requires Form 8283.
**Mark the post that answers your question by clicking on "Mark as Best Answer"